Posted on 07/28/2014 6:56:49 AM PDT by SeekAndFind
The “Iron Maiden." She was the staunch and sturdy leader of Great Britain who once held up F. A. Hayek’s masterwork “Road to Serfdom” and declared “This is what we believe in.”
Hayek’s work is a road map for what could go wrong when individual freedoms are lost and central planning becomes the answer for every ill. When truth is bent to meet the moment and government decision making is the proposed cure all, “serfdom” is the destination.
Margaret, in believing Hayek’s cautionary, also declared that Socialism cannot sustain itself. Socialism can not last because eventually “you run out of other people’s money."
Well Margaret, you can’t believe what has happened.
Enter the Federal Reserve and Central Banking.
Once created for the proposed purpose of easing temporary strains in the financial system, the central planners that are now the central banks, have made certain that governments “will not run out of other people’s money."
(Excerpt) Read more at americanthinker.com ...
Stark raging nonsense.
“Quantitative easing” is the process of the Fed writing “+$1,000,000,000,000” in the Assets column and “-$1,000,000,000,000” in the Debts column on the grounds that they add up to $0. Then they ‘loan’ that $1T on the grounds that it will be paid back (not a problem when this repeated process devalues the dollar to the debt being worth no more than a pair of shoes).
The problem so many don’t grasp is that _whatever_ the total figure for currency is, it merely slices up & represents the total inherent value within society. Making the number bigger, no matter how complex the process thereof, is just cutting a pizza into smaller pieces: a larger the number of pieces doesn’t make the pizza any bigger (actually makes it practically smaller, as there’s more edge waste). Now, if the pizza (total value in society) _does_ increase, then increasing the number of slices is fine - so long as the resulting pieces are the same size as they were, just dividing up more pizza; inflation is fine IF it matches economic growth, keeping the value of a dollar consistent by balancing the increase in value with the increase in currency units available to match.
QE, as currently implemented, pushes inflation way past matching economic growth, and attempts to solve the problems of increased taxation by “teleporting” value by simply flooding the market with more currency, shrinking the value of existing currency by dumping more in which inherently absorbs value simply by being fungible within an otherwise finite market.
The problem, which the author inexplicably fails to understand, is that increasing currency while pretending it represents the same value per unit means there is more demand for value in society than there exists. Those demanding “redistribution” will discover that regardless of how many units of currency they (as a whole) receive, it’s not enough value taken from others to supply basic human needs. Everyone needs the caloric content of about a whole pizza per day; cutting pizzas into smaller slices to redistribute among more people not making pizzas does not create more pizzas, and if there isn’t enough pizza to go around no amount of cleverness will feed more people. Christ may have fed thousands with a few loaves & fish, but government is not God.
Yeah, I believe people in Weimar Germany were wallpapering their walls with money and burning it in their furnaces. You got more heat out of a wheelbarrow load of money than you could out of the coal it would buy!
Or a big fat target.
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